GDP, Inflation and Interest Rates Expected to Go Up in Brazil Next Year

Inflation in Brazil According to a Brazil's Central Bank poll among financial experts, which is published weekly in the Focus Bulletin, the Brazilian economy is expected to expand 0.21% in 2009  In the previous edition the growth estimate was 0.20%.

However for 2010 the expansion rate forecast remains at 5% as has been for the last three weeks.

The experts' poll shows that inflation and interest rates for 2009 and 2010 will be higher than originally estimated.

Inflation (better identified as the broad consumer price index or IPCA) is estimated to reach 4.26% this year up from the 4.25% of last week, and 4.48% in 2010, compared to the 4.25% of a week ago.

The basic interest rate or Selic is forecasted to end 2009 at 8.75%, (a record low), but by the end of next year should be at 10.6%, up from 10.5%.

Meantime Finance Minister Guido Mantega said that there are not going to be any new surprise regarding foreign exchange policies for the rest of the year.

Foreign investors have seen two new taxes added to capital markets this year mainly the 2% tax on foreign inflows into stocks and bonds and a new 1.5% tax on investors who are selling Brazilian stocks in order to buy the same US depositary receipts listed on the New York Stock Exchange.

The massive inflow of funds to Brazil has made the local currency, Real soar 30% against the US dollar so far this year, boosting imports but making Brazilian exports less competitive in foreign markets.

Mercopress

Tags:

Ads

You May Also Like

Mission Accomplished. Brazilian Soldiers Leave East Timor.

A Brazilian Air Force (FAB) Boeing landed this Tuesday, May 24, in Porto Alegre, ...

Bring Your Own Condom to Brazil for the World Cup, Warns the US

A booklet published by the US Centers for Disease Control and Prevention (CDC) for ...

Brazil’s New Middle Class Hasn’t Shrunk the Inequality Gap

The past two decades have witnessed a series of political and economic rollercoaster rides ...

Bosch Opens Anti-Lock Breaking System Factory in Brazil

Bosch is going to open an Anti-Lock Breaking System (ABS) factory in Brazil. The ...

Brazil Brings Zero Hunger to Egypt

At the invitation of the World Bank, Brazil’s Minister of Social Development and Hunger ...

South Produces 41% of Brazil’s Crop

In the Systematic Survey of Agricultural Production (LSPA), released today by the Brazilian Institute ...

Brazil Makes Biofuel a National Priority

Brazil’s President Luiz Inácio Lula da Silva said today that few countries are as ...

Brazil and Argentina Differences Are Narrowing Says Argentinean Minister

Economy ministers from Brazil and Argentina meeting in Buenos Aires said that they are ...

Brazil’s Industry Outputs Shrinks. High Interests and Low Dollar Are Blamed.

Brazilian industrial production dropped 2% last September  compared to August and 0.7% in the ...

Iran Wants Brazil to Mediate Nuclear Agreement with UN

Iran’s ambassador in Brazil, Mohsen Shaterzadeh, refutes the idea that the relationship between Brazil ...